A sharp rise in fuel costs pushed US inflation to its fastest annual pace in three years in May, according to data published on Wednesday, strengthening the case for the Federal Reserve to keep borrowing costs higher for longer.
Consumer prices rose 4.2% in May from a year earlier, the Labour Department said, up from 3.8% in April and marking a third consecutive increase. On a monthly basis, prices climbed 0.5%, following gains of 0.6% in April and 0.9% in March.
